CVS Health Corp (NYSE:CVS) on Tuesday reported stronger-than-expected fourth-quarter revenue and adjusted earnings, driven by growth across its pharmacy, health services, and insurance businesses.
The US pharmacy chain and health insurer said fourth-quarter revenue rose 8.2% to $105.7 billion, topping analysts’ expectations of $103.6 billion.
Adjusted earnings per share (EPS) came in at $1.09, above the $1 forecast. GAAP net income for the quarter was $2.923 billion, with operating income of $2.112 billion.
Full-year 2025 revenue climbed 7.8% to a record $402.1 billion. Adjusted EPS for the year was $6.75, while GAAP diluted EPS was $1.39. The company generated $10.6 billion in cash flow from operations for the year.
Operationally, CVS said its pharmacy segment completed the transition to cost-based reimbursement across commercial, Medicare, and Medicaid businesses. Health insurer Aetna approved more than 95% of all eligible prior authorizations within 24 hours, with many processed instantaneously. CVS Caremark also reported strong customer retention and wins heading into 2026.
Looking ahead, CVS confirmed its 2026 full-year guidance for adjusted EPS at $7 to $7.20, slightly above analysts’ estimate of $7.17. GAAP EPS guidance is set at $5.94 to $6.14. The company updated its cash flow from operations guidance to at least $9 billion, down from the previous $10 billion.
“Our fourth quarter and full-year results demonstrate the progress we are making in transforming the health care experience with our unique collection of businesses,” CVS CEO David Joyner said. “From lowering drug prices, to improving navigation of health care, to being the front door of care across our country, we are well positioned to achieve our ambition to be the most trusted health care company in America.”
Shares rose 2.6% in early trading.